, Screen Gems, Sony Pictures Classics, and TriStar labels. The company also licenses library content comprised of older, previously released theatrical films from many of Hollywood’s major studios, including Lionsgate, MGM, Paramount, Sony, Twentieth Century Fox, Universal and Warner Bros. In addition to theatrical films, it licenses made for television movies, series and other content from studios, production companies or other rights holders. Original Programming The company contracts with independent production companies, including Pacific Renaissance, Lionsgate Television and BBC Worldwide Limited to produce the majority of the original programming that appears on its networks. These contractual arrangements provide the company with either outright ownership of the programming, in which case it wholly-own the series and receive all distribution and other rights to the content; an exclusive U.S. pay television license and other distribution or ancillary rights covering specific territories for specified periods of time; and an exclusive U.S. pay television license which provides for the programming to appear only on its Starz and Encore networks for specified periods of time. At times, the company retains certain rights to exploit its original programming in the home video, digital (Internet) and television ancillary markets both in the U.S. and worldwide. These ancillary markets create downstream revenue opportunities for its Starz Distribution operating segment. Transmission The company uplinks its programming to five non-preemptible, protected transponders on three satellites positioned in geo-synchronous orbit. These satellites feed its signals to various swathes of the Americas. The company leases these transponders under long-term lease agreements. These transponder leases have termination dates ranging from 2018 to 2021. The company transmits to these satellites from its uplink center in Englewood, Colorado. Regulatory Matters The company is required to obtain any necessary music performance rights from the rights holders. These rights generally are controlled by the music performance rights organizations of the American Society of Composers, Authors and Publishers, Broadcast Music, Inc. and the Society of European Stage Authors and Composers, each with rights to the music of various artists. The company is subject to the Federal Communications Commission’s program access and antidiscrimination rules. The company is subject to the program access rules due to interests held by Liberty Global, Inc. in a cable television system in Puerto Rico, which interests are attributable to it under the Federal Communications Commission rules. STARZ DISTRIBUTION Starz Distribution segment includes the operations of the company’s Home Video, Digital Media and Worldwide Distribution businesses. Sales and Distribution Through its majority-owned subsidiary Anchor Bay Entertainment, LLC (Anchor Bay Entertainment), the company’s Home Video business unit sells or rents DVDs (standard definition and Blu-ray) under the Anchor Bay and Manga brands, in the U.S., Canada, United Kingdom and Australia and other international territories to the extent the company has rights to such content in international territories. Anchor Bay Entertainment develops and produces certain of its content and also acquires and licenses various titles from third parties. Certain of the titles produced or acquired by Anchor Bay Entertainment air on Starz Networks’ Starz and Encore networks. Anchor Bay Entertainment also distributes other titles acquired or produced by the company, including the Starz Networks’ original programming content, Overture Films, LLC’s (Overture Films) titles, and TWC’s titles. The company’s Digital Media business unit is a distributor of digital and on-demand content for its owned content and content for which it has licensed the non-pay television ancillary rights (including Overture Films’ titles) in the U.S. and throughout the world to the extent it has rights to such content in international territories. Digital Media receives fees for such services from a range of partners and distributors.
starz - b (STRZB:NASDAQ GS)
8900 Liberty Circle
Englewood, CO 80112
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